Quick Take
Most of the Santa Cruz County housing market showed few surprises in April, but the number of available homes took a leap, rising to more than 400 properties on the market for the first time since October 2025.
The Santa Cruz County housing market saw its inventory take a leap to more than 400 properties available, the first time there have been more than 400 homes on the market since October 2025.
Real estate agents and mortgage advisors say the jump is partially seasonal, but also due to mostly steady mortgage rates and a willingness to weather geopolitical turmoil and its effects on the economy.
“Nobody likes the high price of gas or is happy with the situation in the Middle East,” said Monterey Bay Mortgage advisor Scott Goodrich. “But they’re kind of accepting it for what it is, and it’s not affecting people’s decision-making process.”
Sereno Group agent Jennifer Watson agreed, saying “people are taking it in stride.” She said she believes the market will see its usual increased activity throughout the summer: “We’re going to see more buyers because they’ll get excited about more inventory.”
The number of available homes jumped from 349 to 407 in April, just over a 16% increase, according to the latest data from the Santa Cruz County Association of Realtors. Local inventory had steadily dropped over the second half of 2025, but has begun to inch back up in the early months of 2026.
In April, 105 sales closed, which is close to the 108 sales that closed in March. Prices were similar across the board as well, with a median sales price of $1,400,000 in April compared to $1,348,250 in March, just under a 4% increase.
Properties sold slightly faster in April, averaging 40 days on the market compared to 47 in March. That’s a yearly trend, as weather begins to warm and the local real estate industry transitions into its busiest time – spring and the summer.
Coldwell Banker real estate agent Jessica Wallace said that both the generally high level of inventory and uncertainty around the economy tied to factors like inflation and rising oil prices aren’t taking people out of the market entirely, prospective buyers are taking their time perusing their options.
“Open houses are pretty well-attended, but that doesn’t necessarily translate to a ton of offers,” she said.
Mortgage rates, which currently sit in the low-to-mid-6% range, also appeared to be slowly trending down prior to the war in Iran. Once the conflict began, those rates stagnated or even increased slightly. Although the current rates are largely typical for the area, people who locked in historically low rates in the 2% to 3% range during and right after the pandemic might still have difficulty moving, even if they need to.
“Downsizing doesn’t make much sense. If you have a mortgage with an interest rate of 3% and you look to downsize, you’re barely saving any money,” Wallace said. However, she added that most people entering the market to buy a property have adjusted to the current rates.
Goodrich said even though it can be difficult for some, the understanding that rates aren’t likely to shift much in the foreseeable future could be driving some of the new listings and higher inventory.
“They’ll hate to give up a 3.5% rate, but they’re understanding that if there’s something that makes sense for us in the big picture, let’s go for that,” he said.
Watson said that single-story homes and properties with accessory dwelling unit potential have remained hot commodities, as have multifamily properties.
“I have a [multifamily] listing right now, and people coming through are so thankful that there’s something that could match what they’re looking for,” she said. “Their elderly parents can live next to them but not with them, or others might have kids who rent one side while the buyer lives on the other side.”
Wallace added that most people are not looking for fixer-uppers: “It’s so expensive to get things done these days, especially if [a property] is really dated and needs everything fixed. Turnkey stuff is really attractive right now.”
But even with high contracting costs, somewhat elevated interest rates, and economic uncertainty, those in the industry still expect a busy summer as people consider the long-term economic picture.
“The longer this drags out, the more people will be affected, and some people are more directly affected than others,” said Goodrich. “If you’re driving a lot and seeing your gas bill go higher and higher. [But] if you’re in a place where the price of gas and other goods isn’t as big a deal, then you can absorb that a little easier.”
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